HKMA Insurance Update Tutorial 2022 20230222 update en 1

Required documents for Self-employed person of borrower and guarantor

  1. Copy of Hong Kong Identity Card/ Passport
  2. The latest proof of home address
  3. Prelim (Preliminary Agreement for Sale and Purchase)
  4. Valid Business Registration
  5. Practicing Certificates (for professionals)
  6. Latest tax demand note
  7. Latest audited financial statements (If any)
  8. Bank book / statements showing average net capital flow for the past six months

Reminder for Mortgage Insurance Programme

  1. Eligible Property: Residential properties

  2. Borrower Type: Personal Customers

  3. Use of Property: Owner-occupied

  4. LTV ratio above 80%: applicant(s) should be regular salaried first-time homebuyers

  5. Debt-to-Income ratio (DTI): The limit on DTI of the total monthly repayment amount for the borrower should not exceed 50% of total income per month, and banks should stress-test mortgage applicants’ repayment ability, assuming an increase in mortgage rates of at least three percentage points, and limit the stressed DTI to a cap of 60%.

  6. Premium rates: Single and annual premium payment option, no premium refund arrangement under annual premium payment option.

  7. Premium rates: Single and annual premium payment option, no premium refund arrangement under annual premium payment option.

  8. The sum of age of borrower and loan tenor: Bank will usually specify that the sum of age of borrower and loan tenor should not exceed 75 years, while loan tenor should not exceed 30 years.

  9. The sum of property age and loan tenor: Bank will usually specify that the sum of property age and loan tenor should not exceed 75 years, while loan tenor should not exceed 30 years. (Remarks：For Village House Mortgage, the maximum sum of “Original/ Remaining Term To Maturity” and “Age of Property” should not exceed 55 years , while loan tenor should not exceed 30 years.)